Overview
- The state package totals $1.5 billion over two years, with $1 billion in FY2026 and $510 million in FY2027, including $510 million that will recur annually.
- More than $500 million in recurring aid targets costs shifted to the city, including about $300 million for youth programming, $150 million in restored sales tax revenue and $60 million for public health, with another $500 million for shared priorities still to be defined.
- Mayor Zohran Mamdani has revised the projected shortfall from roughly $12 billion to about $7 billion after higher revenues, reserve use and an agency savings plan.
- Gov. Kathy Hochul continues to reject raising personal income taxes on the wealthy, even as Mamdani has pressed for a millionaire’s tax and higher corporate taxes.
- Watchdogs call the aid meaningful but insufficient and warn the recurring support could widen future state gaps, as City Hall weighs property-tax changes, reserve draws and deeper agency savings to bridge the remainder.